21 Sep Rent Increase
In San Diego, a rent increase is not out of the question. In fact, based on market conditions and the property itself rent can go up and down like the stock market. And, while this is true raising the rent takes a good blend of business skills, market research, and understand the legal requirements. Whether you are a landlord who manages their own rentals, or you have a property management company working for you. If you are thinking about raising rent for your rental property, it is important to understand the process!
Determining New Rent: Charge Too Much And You Lose, Charge Too Little And You Lose…
An awkward scenario is much like the discomfort you might feel when it comes to collecting late rent. Awkward scenarios that revolve around collecting the rent like missed payments, and late rent can be a hassle. Likewise, raising the rent is no different. Whether you are renting-out a single family home, or multiple units in an apartment building. Unless your rental properties are located in a rent controlled area, a rent increase is not unreasonable. But be aware, there are specific rules you must follow when raising the rent!
Advice For Landlords: If Your Rental Properties Are Located in a Rent Controlled Area This Guide is Not For You…
Determining The New Rent Amount
This part of the task can be somewhat frustrating if you don’t know what you are doing. Charge too much and you may have a hard time keeping and attracting good tenants. Charge too little and you lose money. And, while these are a few good points to make. The most important place to start is understanding the legal requirements. The amount you raise the rent will have an impact on how much notice you are legally required to provide.
PLEASE NOTE: These are only guidelines and not definitive statements of the law. Questions about the law’s application should be directed to a lawyer.
Whether you can or can’t raise the rent depends on whether you have a lease or rental agreement. What it says can have an impact on what you can or cannot do. Or put simply, if you use leases you cannot raise the rent during the term of the lease unless the lease allows rent increases. For more on rent increases refer to the California Tenants A Guide to Residential Tenants’ and Landlords’ Rights and Responsibility by clicking here.
Want to Find Out How Much Your Property Will Rent For?
Be Strategic: Increasing Rent Every Year
Smaller increases every year will be more effective! It allows your tenants to get used to the idea of paying a little bit more every time their lease renews. If you feel guilty about raising the rent remember, your costs go up. Expenses like taxes, insurance, and maintenance will go up, and if you are smart you will follow suit. That is, if you do not want to lose money!
Raising The Rent Without Feeling Guilty
For those who have raised rents, the process can be daunting. To make matters worse, if you are the type who lets guilt get in the way. You may very well be losing on your investment. You have a right to make money from your investment property! For any landlord looking for a an easier way to increase rent, it may be time to hire a property management company. Deciding to utilize a property management company can take a lot of the stress out of owning a rental property. By finding a full service company that is willing to go above and beyond to ensure your satisfaction and that of your tenants, you will find more freedom. We manage your rental property, you enjoy your life!